6# ATR Channel Breakout Trading System

Channel Breakout Strategy

The system trades based on a volatility-band breakout where volatility is
measured using(ATR). The center of the ATR
Channelis defined by an Exponential Moving Average of the closing prices using a number of periods defined by the parameter Close Average periods.

This system is a variation on the Bollinger Breakout System which uses Average true Range instead of standard deviation as a measure of the volatility which defines the width of the channels or
bands.

The system is a form
of breakout system that buys on the next
open when the price closes above the medium band ATR
Channel and short entries are the
mirror opposite with selling taking place when the
price closes below the Medium band of the ATR Channel.

Exits: Three options,

1)when the price closes back inside the channel

2)When the price touch on The top or
bottom Atr Channel

3) with Predeterminated PT.

Stop Loss 2 pips above or below firs band atr Channel.

In the pictures belowATR Channel Breakout Trading Systemin action.

ATR Channels Metatrader Indicator

Share your opinion, can help everyone to understand the forex strategy.

Comments: 1

#1

Friday(Sunday, 19 July 2015 07:39)

What is the atr value of the channels, please.
Can you attach a template. Thanks